Evidence from the energy-technology-growth nexus: A new study based on technology-minerals based complexity index

Abstract

The increasing trend in sustainable economic growth over the last few decades has elevated the energy demand, technological innovation, and access to minerals resources are contributing well to economic development. This article investigates the nexus among minerals resource complexity, energy consumption, technology, and economic growth by employing autoregressive distributed lag and vector error correction techniques for Pakistan from 1995 to 2021. Following thorough research, the long-term results show that an important 9.73 points of economic growth result from every 1 % increase in the complexity of natural resources. On the other hand, technology and energy use negatively affect economic growth, causing drops of −0.03 and −12.9 points, respectively. One-way causality was noted between mineral resources' complexity and economic growth. Moreover, a one-sided causality effect was also confirmed between energy use, technology, and economic growth. Additionally, it was predicted that there is a neutral causality between mineral resources and technology. Corresponding to this, technology and energy consumption have a bidirectional causal relationship. These results imply that energy consumption, technological advancements, and mineral resources contribute as major economic growth drivers and can improve environmental quality.

Keywords

• Minerals-dependent green technology
• Energy consumption
• Technology innovation
• Economic growth